Trends in Texas

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Trends in Texas

• Growing population
• Rising demand for added capacity
• Aging infrastructure
• Increasing maintenance costs
• Anticipated decline in gas tax revenues
• Rising construction and right of way costs
• Pay as you go cant keep up with demand

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Austin
Central Texas Turnpike Project 3.6 Billion
Project Funding Sources - Revenue
Bonds - Transportation Infrastructure
Finance and Innovation Act (TIFIA)
Loans - TxDOT Gas Tax - Local
Contributions
the toll road financing of the 21st century. It
will be a model for others in the future. -Bond
Buyer August 5, 2002
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Public-Private Partnerships

• Combine benefits of government and private
  business
• Long-term strategic partner
• Minimize public funding
• Private sector equity innovation
• Maximize private investment
• Shared risk

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Choosing the Right CDA Model
Traditional (Design-Build) (SH 130
1-4) (SH45SE) (183A)
Corridor Model (Long-Term Developer) (TTC-35) (I-
69/TTC)
Public Private Partnerships (Concession) (SH 130
56) (LBJ) (820/183) (SH121)
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Trans-Texas Corridor 69 Trans-Texas Corridor
35 SH 121 I-635, LBJ Freeway SH 161 I-820/SH
183/I-35W US 281/Loop 1604 SH 114/SH 121, The
Funnel
Dallas/Fort Worth
TTC-35
Sample of Possible/ Existing CDA Projects
San Antonio
I-69/ TTC-69
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Trans-Texas Corridor Concept
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Development of TTC-35

• Moving forward on two separate but simultaneous
  tracks
• Environmental Study
• Comprehensive Development Agreement
• Development tracks are concurrent not sequential

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The TTC-35 Contract

• Comprehensive Development Agreement (CDA)
• A 50-year agreement between TxDOT and Cintra
  Zachry
• Integrates private sector equity and innovation
• Provides an umbrella framework for the long-term
  partnership
• Project means the entire corridor from Oklahoma
  to Mexico
• Facility means the individual segments to be
  designed, construction, operated, and maintained

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Master CDA and Facility Agreements

• Master CDA is umbrella agreement between TxDOT
  the Private Sector Developer
• - Establishes general terms of working
  relationship between TxDOT Developer for up to
  50-years
• - Requires TxDOT and Developer to create Master
  Development Master Financial Plan that will be
  followed to implement TTC-35
• - Does not authorize any construction activities
• Facility Agreements will
• - Be developed specifically for each independent
  Facility as part
• of TTC
• - Will cover design, construction, operations,
  finance, etc for specific projects.
• - May be negotiated with TTC Developer or
  procured using other procurement strategies

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MDP Near-Term Facilities
Estimated Concession Value
Near Term Facility
Facility Cost
Near Term Connecting Facility
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Austin
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SH 130 Segments 5 6First Concession
Agreement
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SH 130 PPP Concession Project

• 41 miles, 4-Lane tollway
• Cintra-Zachry self-performing all development,
  financing, and OM
• 100 open road tolling
• 50-year concession
• 1.35 Billion project at no cost to State
• Developer provides up-front payment (25 million)
  and revenue sharing to TxDOT) (P.V. estimated at
  245 million)
• Ongoing capacity improvement and handback
  standards
• Long-term source of maintenance funding - - saves
  over 700 million of public funds

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TxDOT Concessions

• What is in the best interest for the citizens of
  the state?
• Up-front money vs. revenue sharing
• Who sets the tolls?
• Who assumes risk?
• Tolling methodology

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All Electronic Tolling

• All electronic open road tolling
• No toll booths
• Interoperable with other toll roads in state
• TxTag and video billing

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Contact Information

• Phillip E. Russell, P.E., J.D.
• Director, Texas Turnpike Authority Division
• Texas Department of Transportation
• [phone]
• Fax [phone]
• prussel_at_dot.state.tx.us
• For more information go to
• www.dot.state.tx.us or www.keeptexasmoving.org